IDC increases forecast for Uzbek ICT market growth

Tashkent, Uzbekistan, Sept. 13

By Demir Azizov– Trend:

International Data Corporation, the international research and consulting company, said in a message that it has raised the forecast for growth of the information and communication technologies (ICT) market of Uzbekistan.

According to the company, the liberalization of the economy, undertaken by the Uzbek leadership, will have significant positive impact on both the overall business climate in the country and the development of the ICT market.

The revision is related to the government’s measures to reform the economy, in particular, the liberalization of foreign exchange policy and foreign trade operations, which are expected to have a positive impact on both the overall business climate in the country and the development of the ICT market.

IDC revised the current and long-term outlook for the development of the ICT sector as compared to the forecast for 2016 (hereinafter forecasts for 2016 will be given in parentheses).

According to IDC, in case of complete liberalization of foreign trade and currency regulation in Uzbekistan in 2017-2018, the ICT market of Uzbekistan will grow 6.9 percent in 2017 compared to 4.8 percent growth in 2016.

The highest increase will be recorded in the services segment – 17.6 percent (13.3 percent a year earlier). Segments of IT equipment and software will grow 6.1 percent (4.1 percent) and 13.6 percent (12.4 percent), respectively.

The forecast of Compound Annual Growth Rate (CAGR) for 2016-2021 has been increased for the ICT market as a whole to 12.9 percent (8.2 percent growth was projected in the previous forecast for 2015-2020), for equipment – to 12.1 percent (7.7 percent), for services – to 22.1 percent (13.3 percent), for software – to 19.6 percent (11.3 percent).

According to IDC estimates, in case all the Uzbek government’s plans to liberalize foreign trade operations, exchange rate regime and business conditions in the country are implemented, the growth rate of the ICT market will be on average 30 percent higher as compared to the previous forecast, which didn’t take into account these measures.

IDC expects that in five years the ICT market of Uzbekistan will grow 83.5 percent in comparison with 2016. The equipment segment will grow by 76.9 percent, software – by 145.2 percent, services – by 171.5 percent. If the Uzbek authorities take additional measures of economic stimulation, IDC expects even more optimistic growth rates.

IDC was established in 1964. It is engaged in studying the global market of information technologies and telecommunications.

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